Yes this is standard. However, be firm and put some pressure on the broker. Use this strategy: "You stated that your fee is $_____. However, since you're in NJ and not Manhattan, I know that rents and brokerage fees are cheaper on this side of the Hudson River. I want to pay $____ (calculate 10% less or 75% of 1 month's rent). See what the broker says. He/she may agree, counter with something else or reject it outright. It doesn't hurt to try. Worst case scenario - you have to pay the full fee.
Just that I know from experience, brokers along the Hudson River think they can get away with charging high fees because they know most renters are from NYC and are used to paying high fees and getting ripped off for everything. So brokers in NJ figure, hey if they do it in Manhattan, I can do the same in NJ.